Silver Price Daily Forecast – Silver Holds Its Ground

Silver Video 11.06.20.

Silver Tries To Settle Above $18.00

Silver is trying to settle above $18.00 amid global market sell-off and stronger U.S. dollar.

Global markets are worried about the new economic forecast of the U.S. Federal Reserve which projected that the U.S. GDP will shrink by 6.5% in 2020 while the Unemployment Rate will be at 9.3% at the end of the year.

These worries led to a major sell-off in most asset classes but the precious metal segment looks strong.

Gold is trying to get closer to $1750 per ounce as demand for save haven assets increase. Gold/silver ratio is mostly flat at 96.5 as both gold and silver show reasonable strength amid the global market sell-off.

The U.S. dollar is gaining ground against a broad basket of currencies, and the U.S. Dollar Index has returned back above 96. It remains to be seen whether the U.S. dollar will be able to gain more momentum as Fed promised to keep interest rates near zero through 2022 and maintained its current asset purchase program.

A stronger U.S. dollar is bearish for silver as it makes it more expensive for buyers who have other currencies. However, if the upside in the U.S. dollar is due to a global rush into safe haven assets, precious metals have good chances to get to higher levels despite strength of the American currency.

Technical Analysis

Currently, silver is trying to settle above $18.00. If this attempt is successful, silver will head towards the next resistance level below $18.50. I’d note that there is some minor resistance near $18.15 but it should not be a problem in case silver gains sufficient upside momentum.

In case silver settles above $18.50, it will likely gain additional upside momentum and head towards the test of the major resistance level at $19.00. In case the global market sell-off continues and demand for precious metals stays strong, silver will have good chances to get above $19.00.

On the support side, the nearest support level for silver is located at $17.50. If silver gets below this level, it will develop additional downside momentum and head towards the next important support level at $17.00.

For a look at all of today’s economic events, check out our economic calendar.